TaxTMI 
TaxTMI 
TaxTMI 
2012 (12) TMI 119
X X X X Extracts X X X X
X X X X Extracts X X X X
....f set off while working the MAT liability. 2. During hearing, the learned CIT DR, Shri Keshav Saxena, advanced very forceful arguments by submitting that with effect from 1994 there is an amendment in section 115JB of the Act and since in the assessment year 2000-01 there is no loss it has to be taken at nil. It was pleaded that in the assessment year 2001-02 the loss should be nil u/s 115JB and this calculation of the assessee is wrong as income escaped taxation to the tune of Rs.2.22 crores. Plea was also raised that it is a over-riding section, therefore, the conclusion of the learned Commissioner of Income Tax (Appeals) is unjustified. Reliance was placed upon the decision in Rashtriya Ispat Nigal Limited; 285 ITR 1 (AAR). The thrust of assertion is that a wrong calculation was done by the Assessing Officer by inviting our attention to page 15 of the paper book by pointing out that the reduction of the amount of Rs.2,22,30,625/- by the assessee is off-shoot of wrong calculation. Plea was also raised that no discussion has been made in the assessment order while calculating the book profit as the same was straight way accepted by the Assessing Officer. It was submitted that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....available on file. Brief facts of the case are that the assessee is a joint venture with Government of Madhya Pradesh, declared total income at nil in its return filed on 31.10.2001 (assessment year 2001-02) under the normal provisions of the Act and the book profit at Rs.1,33,69,061/- was calculated u/s 115JB of the Act. The case was selected for scrutiny, therefore, required notices were issued and the assessment was framed u/s 143(3) of the Act on 27.3.2004. Subsequently, the notice u/s 148 of the Act dated 9th April, 2007 was issued to the assessee. The reasons for assessment were also supplied to the assessee. Before coming to any conclusion, we are reproducing hereunder the reasons recorded by the ld. Assessing Officer: - "Reasons leading to the belief that income has escaped assessment for assessment year 2001-02 For assessment year 2001-02 the assessee had filed its return of income on 31.10.2001 showing taxable book profit of Rs. 1,33,69,061/- under the provisions of section 115JB of the Act. Assessments of the above year were completed u/s 143(3) of the Act on 27.3.2004 on the returned book profit. However, from the perusal of the brought forward losses and unab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ully all material facts relating to the calculation of book profits for section 115JB of the Act. In the original assessment orders, the A.O. had accepted the calculation of book profits as declared by the appellant after considering the issue in detail. Thus, the condition precedent regarding failure on the part of the assessee to disclose fully and truly all material facts was absent and thus the assessment cannot be reopened after the expiry of four years after the end of the assessment years 2001-02 and 2002-03. Therefore, considering the facts and circumstances of the case, I am of the opinion that the A.O. had not validly assumed jurisdiction u/s 147 and the notices issued for reopening the assessment for A.Y. 2001-02 & 2002- 03 were invalid. Hence, the consequent assessments completed u/s 147/143(3) for A.Ys. 2001-02 & 2002-03 are annulled. 3.10 Therefore, considering the facts and circumstances of the case and legal position on the issue, I am of the opinion that since the notices u/s 148 were issued by the A.O. on 09.04.2007 after the expiry of four eyars from end of the A.Ys. 2001- 02 and 2002-03 and in the reasons recorded there is no allegation regarding failure on the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n filed by the assessee which has been reproduced (in the form of Table) in aforesaid para no. 3. The opinion of the learned Assessing Officer is that for the assessment year 2001-02 the book profit should have been reduced by the amount of Rs.1,31,54,486/- and not Rs.2,22,30,625/- as taken by the assessee resulting into escapement of income to the tune of Rs.90,76,139/-. Similar reasons were recorded for the assessment year 2002-03. However, if the facts disclosed by the assessee in the original return are analysed, we find that the claim u/s 115JB of the Act has been correctly claimed by the assessee, therefore, there is no question of escapement of income. We further find that the assessee reduced the book profit by the amount of Rs.22,23,0625/- which is the lower of brought forwarded loss and absorbed depreciation for the purpose of MAT u/s 115JB of the Act and the assessee adjusted the positive book profit earned during the assessment year 1997-98 and 1990-2000 from the brought forward losses in which we find no infirmity. 5. We also find that sub-section (5) of section 115JB specifies that save as otherwise provided in this section, all other provisions of this Act shall ap....